Last year was a brutal one for the oil industry. The COVID-19 outbreak clobbered demand for oil and refined products, causing prices to tumble. That affected the volumes flowing through pipeline systems, affecting the cash flows of most master limited partnerships (MLPs).
However, with vaccines rolling out and Saudi Arabia recently giving the oil market a big shot in the arm by reducing its production, 2021 appears poised to be a much better year for oil stocks, meaning beaten-down MLPs like Magellan Midstream Partners (NYSE: MMP) and NuStar Energy (NYSE: NS) could bounce back sharply in 2021. Here’s a look at which seems like the better buy right now.